OWENSBORO, Ky. — German American Bank of Jasper, Indiana, and First Security Bank of Owensboro, Kentucky, announced a merger.

First Security Bank locations will take on the German American name when the transaction closes, which is expected sometime in the fourth quarter of this year.

In Evansville, First Security Bank has locations on Fulton Avenue and South Green River Road. There's also a Newburgh branch.

First Security has multiple branches in the Kentucky cities of Owensboro, Bowling Green and Lexington.

The transaction will give German American a substantial Kentucky presence, said Mark Schroeder, chairman and CEO.

"That was the attraction of combining the two organizations," Schroeder said. "We have very similar philosophies in how we do business."

Schroeder said he expects the merger will have minimal impact on employment in the two companies.

Michael Beckwith, chairman and CEO of First Security, will become Kentucky Divisional President of German American when the transaction closes. A First Security board member will join the board of German American upon completion of the merger.

Shareholders of First Security are to receive payments of $12 per share when the transaction is complete.